Apple Expands Manufacturing Plans in India, Include iPads and AirPods

Apple is poised to significantly broaden its manufacturing footprint in India by initiating the production of iPads and AirPods. This move aligns with Apple's broader strategy to diversify its supply chain and lessen its dependence on Chinese suppliers.

According to recent reports, Apple is preparing to resume its plans for iPad manufacturing in India and ramp up production capabilities for AirPods. The Indian government's push to bolster domestic supply chains has reportedly encouraged Apple to seek new manufacturing partners and strengthen existing collaborations.

A report by Moneycontrol reveals that Apple's earlier attempts to partner with China's BYD for iPad production in India encountered setbacks due to regulatory issues. However, the situation is evolving, and Apple is now looking to advance its ambitious plans over the coming years. Notably, Apple has been assembling iPhones in India since 2017 and aims to manufacture a quarter of its total iPhones in the country in the next few years.

The Moneycontrol report, citing sources who requested anonymity, suggests that Apple's decision to move forward with manufacturing has been bolstered by the Indian government's initiatives to enhance local supply chains. Previous efforts with China's BYD faced regulatory hurdles due to geopolitical concerns.

"BYD was poised to establish an iPad factory in India but encountered clearance issues," shared a senior government official, hinting at a changed landscape and Apple's renewed ambitions for substantial growth over the next few years.

In addition to iPads, Apple has ambitious plans to expand its manufacturing base in India, including the potential production of laptops and desktops. The company has outlined "big plans" for India spanning the next 2-3 years, aiming to build a robust supply chain that attracts new partners while enhancing the capabilities of existing ones.

Apple also plans to start production of AirPods, its popular true wireless stereo (TWS) earphones, in India early next year. This will be the second Apple product manufactured in India after the iPhone.

The Moneycontrol report indicates that Apple has initiated trial production of AirPods' wireless charging case components in Pune with Jabil, an American contract manufacturing company, with potential plans to expand to include Foxconn in similar efforts. The company is already exporting the case components to China and Vietnam.

"Once Apple approves the quality testing, Jabil will scale up commercial production to meet both export and domestic demands," said an individual close to the developments.

Apple's move to expand local manufacturing capabilities aligns with its broader strategy to reduce dependency on Chinese suppliers. The company has been progressively increasing local production of iPhones through partnerships with manufacturers like Foxconn and Tata Electronics, which recently acquired Wistron's operations in India.

Currently, Apple aims to manufacture a quarter of its total iPhones in India over the next 3-4 years, up from the current 14 percent. This initiative is part of Apple's global strategy to diversify its production footprint outside of China, with analysts projecting that a significant portion of Apple products will be made outside China by 2025.

In summary, Apple's expansion of its manufacturing operations in India represents a strategic move to bolster its global supply chain. By producing iPads and AirPods locally, Apple is positioning itself to navigate geopolitical challenges better and enhance its production resilience. As these plans unfold, India is set to become an even more critical hub for Apple's manufacturing activities.